Indian markets may open the day in the green

1 Jun 2022 , 08:57 AM

Indian equity markets may begin today in the green. Most other markets have started the day in the Green. SGX Nifty was up by 1.99% at 10 a.m. Indian time. GDP data that came out yesterday on Indian economy’s performance in March 2022 quarter has not thrown any unexpected, unpleasant surprise.

US markets reopened with profit booking as crude prices hit 3-month highs, with EU to ban use of Russian oil. This saw bond yields rise sharply, along with profit booking in equities. Dow Jones fell over 450 points in intra-day before recouping almost all losses until the last hour of trade saw a fall of 220 points. Nasdaq fell 40 points as technology stocks continued to see some buying interest.
 
 Asian indices start trading in the green today after US futures rose sharply as routine profit booking in the US after a superb last week.  Japanese ‘Nikkei’ is trading higher by over 150 points. Most other Asian markets including ASX & South Korea are also trading with gains. Markets look forward to better earnings from the region as China readies to reopen.
 
Nifty saw another good day yesterday till the last 30 minutes saw huge bout of profit booking as intra-day recovery got sold into on the back of weak US futures. The index had seen great gains over the last 3 days and was ripe for profit booking. Nifty swung over 170 points before closing lower by 78 points. Bank Nifty lost over 339 points as profit booking in large banks dragged the index lower. Rise in crude prices and weaker Rupee saw banks lead the losers. M&M, NTPC, ONGC and Coal India led the gainers.
 
 
Technical View: Nifty likely to find support at around 16300 while 16850 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 35200 while 36200 is likely to act as resistance level.

TRADING call (1-2 days):  BUY Adani Enterprises June future at 2170-2175. Stop loss: 2129.55. Target: 2220
 
 
Derivative call- (time period 1 month):  BUY Godrej Consumer June future at 765-770, Stop loss :752.15. Target : 783.